Question

Bramble Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Date Transaction 1/1 Beginning inventory 2/4 Purchase 2/20 Sale 4/2 Purchase 11/4 Sale Quantity Price/Cost 2,400 $16 3,400 3,900 4,400 3,600 Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7613.) Average-cost per unit 23.96 LINK TO TEXT Compute cost of goods sold, assuming Bramble uses: (Round average cost per unit to 4 decimal places, e.a. 2.7631 and final answers to o decir Cost of goods sold 203700 (a) Periodic system, FIFO cost flow (b) Perpetual system, FIFO cost flow (c) Periodic system, LIFO cost flow (d) Perpetual system, LIFO cost flow (e) Periodic system, weighted average cost flow (1) Perpetual system, moving average cost flow

Answer 1

Solution Required 1.: Computation of average cost per unit Step-1: Calculate Cost of Goods available for sale Unit cost Total cost Date Particulars Units 1/1 Beginning Inventory $16 $38,400 2400 2/4 Purchases $24 $81,600 3400 $136,400 $256,400 4/2 Purchases $31 4400 Total 10200 Cost of goods available for sale $256,400 No. of units available for sale 10200 Step-2: Compute average cost per unit Average cost per unit = Cost of Goods available for sale/ No. of units available for sale = $256,400 10,200 = $25.1373 Average cost per unit $25.1373 Required 2.: Computation of cost of Goods sold (a) Periodic system, FIFO cost flow Under FIFO cost flow, inventories purchased first are issued first We can calculate the Cost of Goods sold under FIFO method as under Total units sold 3,900 3,600 7,500 units Units issued Rate COGS $16 $24 $38,400 2400 $81,600 $52,700 $172,700 3400 $31 1700 7500 Cost of Goods sold $172,700

(b) Perpetual system, FIFO cost flow Goods Purchased Cost of Goods Sold Inventory Balance #of #of units Cost per Cost per Cost per Inventory Balance Cost of Goods Sold #of units Date sold unit units unit unit S 16.00 S 16.00 S 24.00 1/1 2/4 2400 38,400.00 2400 3400 24.00 38,400.00 3400 81,600.00 45,600.00 2/20 38,400.00 2400 S 16.00 1900 24.00 S 24.00 36,000.00 1500 $ 24.00 S 31.00 4/2 4400 31.00 1900 45,600.00 4400 136,400.00 11/4 31.00 S 24.00 2700 1900 @ 45,600.00 $ 52,700.00 $ 172,700.00 83,700.00 S 31.00 1700 Totals 83,700.00 FIFO Method Cost of Goods sold 172,700 (c) Periodic system, LIFO cost flow Under LIFO cost flow, inventories purchased last are issued first. We can calculate the Cost of Goods sold under LIFO method as under: Total units sold 3,900 3,600 7,500 units Units issued Rate COGS 4400 $31 $136,400 3100 $24 $74,400 $210,800 7500 Cost of Goods sold $210,800 (d) Perpetual system, LIFO cost flow Goods Purchased Cost of Goods Sold Inventory Balance Cost per #of units Cost per #of Cost per Cost of Goods Sold #of units Inventory Balance Date sold units unit unit unit 1/1 S 16.00 S 16.00 24.00 2400 38,400.00 2400 2/4 3400 24.00 38,400.00 3400 81,600.00 @ 2/20 30,400.00 1900 S 24.00 16.00 3400 81,600.00 $16.00 500 8,000.00 4/2 1900 31.00 S 16.00 4400 30,400.00 S 136,400.00 S 31.00 $ 16.00 4400 11/4 S 111,600.00 31.00 3600 1900 30,400.00 800 S 31.00 24,800.00 S 201,200.00 $ 55,200.00 Totals G G

LIFO Method Cost of Goods sold 201,200 (e) Periodic system, Weighted Average cost flow Total units sold 3,900 3,600 7,500 units $25.1373 (Refer Req.1) Average cost per unit Cost of Goods sold 7,500 x $25.1373 $188,530 Cost of Goods sold $188,530 ( Perpetual system, moving-average cost flow Goods Purchased Cost of Goods Sold Inventory Balance Cost per #of #of units Cost per Cost per Date Cost of Goods Sold #of units Inventory Balance unit sold units unit unit 1/1 2/4 2400 S 16.00 38,400.00 3400 24.00 2400 S 16.00 38,400.00 81,600.00 $ 120,000.00 3400 S 24.00 S 20.69 S 20.69 $ Average 2/20 4/2 5800 @ $20.69 1900 3900 80,689.66 39,310.34 4400 S 20.69 31.00 1900 39,310.34 4400 S 31.00 136,400.00 $ 175,710.34 Average 6300 27.89 $ 100,405.91 181,095.57 2700 S 27.89 11/4 Totals S 27.89 3600 75,304.43 $ 75,304.43 Moving-average Method Cost of Goods sold 181,096 Cost of Goods sold (a) Periodic system, FIFO cost flow $172,700 (b) Perpetual system, FIFO cost flow $172,700 (c) Periodic system, LIFO cost flow $210,800 (d) Perpetual system, LIFO cost flow $201,200 e) Periodic system, Weighted Average cost flow $188,530 (f) Perpetual system, moving-average cost flow $181,096